According to reports, Microsoft Corporation (NASDAQ:MSFT) is ramping down dependency on OpenAI, the developer of ChatGPT.
What has occurred:
Microsoft is working to incorporate in-house and third-party artificial intelligence (AI) models into its AI product Microsoft 365 Copilot, as per a Reuters report, citing sources privy to the effort.
This is part of the re-architecturing exercise to reduce OpenAI dependency in the core technology of and to decrease costs.
Citing sources, the report mentions that the strategy also addresses the concern under CEO Satya Nadella as to costs and speed for enterprise users made possible by reducing Microsoft 365 Copilot’s dependence on OpenAI.
A Microsoft spokesperson emphasized that OpenAI remains a partner for the company’s frontier models, adding, “We include various models from both OpenAI and Microsoft based on the product and experience.” Neither OpenAI nor Microsoft immediately responded to Benzinga’s request for comment.
Microsoft 365 Copilot has not yet been found to yield a return for companies on their investments into it, the technology entity having refrained from publicizing concrete sales figures of licenses sold.
Why It Matters:
This decision is in line with other Microsoft business units ‘modification’ in the usage of OpenAI’s models. For example, GitHub, acquired by Microsoft in 2018, recently started introducing AI models from Anthropic and Alphabet Inc.’s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google in October as alternatives to OpenAI’s GPT-4.
Formerly, insiders at Microsoft expressed concerns regarding over-dependence of the company on OpenAI for its AI strategy.
In October, Microsoft and OpenAI engaged in discussions to determine how Microsoft’s $14 billion investment in OpenAI would be converted into equity in the AI firm.
Furthermore, a December report revealed that OpenAI is planning to remove a clause that restricts Microsoft’s access to its most advanced AI models once Artificial General Intelligence (AGI) is achieved.
